This week, the House and Senate held hearings on HB 1764 / SB 5578, which propose raising the minimum wage to $25/hour by 2031, with an average 7% annual increase starting in 2026. The bills also mandate 2.3 hours of paid vacation for every 40 hours worked and five (5) days of bereavement leave per event, effective 2028. Employers’ ability to manage leave remains unclear until L&I issues rules.
WR and employers across industries testified in strong opposition, citing several concerns:
- Disproportionate Rural Impact: The bills rely on Puget Sound wage data, ignoring disparities in rural areas.
- Inflationary Effects: Higher wages could drive inflation, reduce hiring, cut hours, and force layoffs or closures, disproportionately affecting low-income families.
- Job Losses: A 2024 Colorado study, (Weighing Minimum Wage Increases Across Boulder County), found similar measures would cause 4–12 job losses for every one person benefiting by 2030, with 90% of lost jobs affecting workers under 25. Retail labor costs would rise 7.6%, forcing closures.
- Uncertain Leave Management: The mandates give rulemaking authority to L&I without clear guidelines, causing operational challenges, especially for essential services like auto repair and tire retailers.
WR urges legislators to focus on easing small business burdens, improving childcare affordability, and curbing inflationary pressures rather than advancing these harmful proposals.
